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HomeMy WebLinkAbout6-26-23 - Special Study Session Agenda PacketSPECIAL STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO June 26, 2023 6:30 pm This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building immediately following the regularly scheduled City Council Meeting. City Council members and City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on June 26, 2023) 3. Virtually attend and participate in the meeting through a device or phone: • Click here to join and provide public comment • Or call +1-669-900-6833 with Access Code: 844 7452 8542 Passcode: 989574 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. Public Comment on Agenda Items 1. The Ives Affordable Housing Project, Phase 2 – Foothills Regional Housing 2. Membership of the Urban Renewal Authority 3. Staff Report(s) 4. Elected Officials’ Report(s) Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: June 22, 2023 SUBJECT: The Ives Affordable Housing Project, Phase 2 – Foothills Regional Housing ISSUE: The City purchased the Bank of the West property located at 7525 W. 44th Avenue in January 2021 for right-of-way required for the Improve Wadsworth project. After the necessary right-of-way was dedicated for the Wadsworth project, a remnant parcel of 15,435 square feet and a structure remains. Foothills Regional Housing (FRH) has made a request to the City to contribute this parcel for inclusion into The Ives affordable housing development project. BACKGROUND: In April 2015, the City was awarded funding through the Denver Regional Council of Governments (DRCOG) Transportation Improvement Program (TIP) to improve Wadsworth Boulevard from 35th Avenue to 48th Avenue. A professional services contract for right-of-way acquisition was approved by City Council in December 2018 to negotiate with and purchase from property owners, along this segment of Wadsworth Boulevard, the necessary rights-of-way to complete this project. Right-of-way from the Bank of the West property located at 7525 W. 44th Avenue was required for construction of improvements along Wadsworth Boulevard. The amount of right-of-way required for those improvements impacted the business operations of the Bank of the West to such an extent, the City was required to purchase the entire parcel. Property appraisals were conducted by the City and the Bank of the West in March 2020 and June 2020, respectively. The just compensation for the parcel was valued at between $1.7 million and $2.3 million. The City’s consultant negotiated a final price of $1,738,000 for the parcel plus an additional settlement amount of $242,000 as an incentive to sell for a total cost of $1,980,000. REQUEST FROM FOOTHILLS REGIONAL HOUSING: FRH is currently working through pre-development activities to produce new affordable housing at the NW corner of 44th Avenue and Wadsworth Boulevard. They already own three parcels at the site, and the zoning is in place as use-by-right to allow affordable housing. This site, what FRH is calling The Ives, is a master-planned assemblage of various parcels and is anticipated to be developed in four phases. FRH recently closed financing and broke ground on 50 affordable units at one of these sites and intends to pursue a future phase of development by submitting a Low-Income Housing Tax Credit (LIHTC) application on August 1, 2023. All units in Phase 1 and Phase 2 will house households earning, on average, less than 60% of Area Median Income. FRH is asking for the City Council to consider contributing the remaining Bank of the West parcel for Phase 2 of The Ives project which will produce another 97 affordable units. In exchange, the City’s homeless and housing navigation program will be able to make direct referrals to FRH for residents they work with for housing in these subsidized units. In order to meet the requirements and deadlines of the LIHTC application, FRH must obtain ownership of this property before the end of September 2023 which has necessitated this urgent agenda item with City Council. FRH will provide more information about The Ives project and this request at the special study session on June 26th. ATTACHMENT: 1. Letter from Foothills Regional Housing, dated June 22, 2023 2. Memorandum of Agreement with Bank of the West 11941 West 48th Avenue, Wheat Ridge, CO 80033 ∙ Phone: 303.422.8600 ∙ Fax: 303.422.3229 Admin. Fax 720.974.5808 Colorado Relay 711 ∙ Web: www.foothillsrh.org June 22, 2023 Patrick Goff, City Manager City of Wheat Ridge 7500 W 29th Ave Wheat Ridge, CO 80033 RE: 7525 W 44th Ave Dear Mr. Goff, The Jefferson County Housing Authority d/b/a Foothills Regional Housing (FRH) is the housing authority serving Colorado’s 774 square mile Jefferson County. FRH provides housing opportunities including affordable apartments, rental assistance vouchers, emergency home repairs, housing navigation, new development and redevelopment in both incorporated and unincorporated areas of Jefferson County. Our mission is to create vibrant, stable communities in areas of opportunity, via bold and strategic initiatives, and to provide families and individuals with housing options driven by compassion and respect throughout Jefferson County. FRH’s portfolio includes 21 rental properties with 1200+ units. Our mission is not achievable without the partnership of entities such as the City of Wheat Ridge. FRH is currently working through pre-development activities to produce new affordable housing within the City of Wheat Ridge and is seeking an investment from the City to further our ability to maximize the development potential of the site via the inclusion of adjacent City-owned real property currently known as the Bank of the West property at 7525 W 44th Ave. This site, part of what FRH is calling The Ives (master-planned assemblage of various parcels and developed in four Phases) is on a major throughfare (Wadsworth) with public transit access running north/south through Wheat Ridge. FRH already owns three parcels at the site, and the zoning is in place as use-by-right to allow affordable housing at an acceptable density per our current project plans on the others. FRH recently closed financing and broke ground on 50 affordable units at one of these sites and intends to pursue a future phase of development on this site by submitting a LIHTC application on August 1, 2023. We anticipate synergies could exist not only in quick construction rollover from Phase 1 to Phase 2, but also with the current service provider partners agreeing to serve Phase 1 able to support any similar needs of future phase residents. All units in Phase 1 and Phase 2 will house households earning, on average, less than 60% of Area Median Income. The city’s support of this project will directly benefit the local economy in generating likely over $20 million in construction costs alone, including many job creation opportunities. This investment will allow FRH to secure affordability and increase housing supply by building new Transit-Oriented, environmentally sustainable, service-enriched units in the City of Wheat Ridge. By doing so, we will ATTACHMENT 1 create long-term, high quality affordable assets that will serve as a welcoming place to call home for lower-income Wheat Ridge residents for decades to come. To meet the real estate needs of developing our target of 97 affordable units in Phase 2, FRH requests that the City of Wheat Ridge contribute the Bank of the West site and improvements at 7525 W 44th Ave in calendar year 2023. Without this site included in our buildable area, we can only produce approximately 80 units in Phase 2 and would not be able to offer Wadsworth forward street scape experience. In partnership, FRH routinely contributes over a million dollars towards its redevelopments by deferring developer fees and land carryback (or capital lease) loans as construction capital sources and intends to do so with this project. Additionally, FRH intends to offer project-based Housing Choice Vouchers to this project to make units affordable to even the lowest income residents of Wheat Ridge, likely up to 30. The value of this contribution alone is estimated at nearly $6,000,000 ($1,100 average per unit cost x 30 vouchers x 12 months x 15 years), not considering inflation. The City’s homeless coordinator will be able to make direct referrals to FRH for residents they work with for housing in these subsidized units. FRH will assume financial responsibility for the legal and transactional costs of the rezone and the real property transaction, as well as any demolition and environmental responsibilities. In exchange for the contribution of the land, FRH will offer the city a $1 lease back for the bank building for up to 12 months, so that it can continue using it for its own purposes until FRH needs to break ground. Based on surrounding leases for similar SF retail buildings that are between $20-$24/SF, an annual market rate value of this $1 lease for the 6,625 building is between $132,500-$159,000. This value is further supported by West Retail Submarket statistics from Costar showing market rent/SF at $22.38, for an annual estimated lease value of $145,750. We look forward to the opportunity to present this request to Wheat Ridge City Council. Sincerely, Amy Case Chief Real Estate Development Officer ATTACHMENT 2 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER ________________ Council Bill No. __________ Ordinance No. __________ TITLE: AN ORDINANCE AMENDING CODE SECTION 25-24 CONCERNING APPOINTMENT OF MEMBERS OF THE URBAN RENEWAL AUTHORITY WHEREAS, the City of Wheat Ridge is a home rule municipality having all powers conferred by Article XX of the Colorado Constitution; and WHEREAS, pursuant to its home rule authority and C.R.S. § 31-23-101, the City, acting through its City Council (the “Council”), is authorized to adopt ordinances for the protection of the public health, safety or welfare; and WHEREAS, in the exercise of this authority, the Council has previously enacted Section 25-24 of the Code of Laws to provide for the number and manner of appointment of the members of the Urban Renewal Authority; and WHEREAS, in 2015, the Colorado Legislature enacted HB 15-1348, which amended the enabling authority for municipal urban renewal authorities to require thirteen (13) members, three (3) of whom must be appointed by the board of county commissioners, the school district, and the special districts levying a mill levy in the City, respectively; and WHEREAS, the requirements of HB 15-1348 become effective upon the approval of new urban renewal plan areas; and WHEREAS, the Council has approved new urban renewal plan areas within the City as of ____________, 2023; and WHEREAS, Section 25-24 of the Code must be amended to provide for the expansion of the membership of the Urban Renewal Authority to comply with HB 15- 1348. NOW, THEREFORE, BE IT RESOLVED by the Wheat Ridge City Council that: Section 1. Section 25-24 is amended to read: Section 25-24 Same-Appointment of members; number. (1) ON AND AFTER _________, 2023,the authority shall consist of THIRTEEN (13) seven (7) members, one (1) of such members being from each of the existing, or hereafter altered, city council districts, and three (3)SIX (6) members to serve at large, ONE MEMBER APPOINTED BY THE BOARD OF COUNTY COMMISSIONERS, ONE MEMBER APPOINTED BY THE JEFFERSON COUNTY SCHOOL DISTRICT BOARD OF EDUCATION, AND ONE MEMBER APPOINTED BY THE SPECIAL DISTRICTS LEVYING A MILL LEVY WITHIN THE CITY, PURSUANT TO CRS 31-25-104(2). If, after reasonable advertisement, no applications are received from residents withing the relevant city council district for a vacancy on the authority, any otherwise qualified resident of the city may be appointed. The at large members may include one (1) elected city council member, and/or one (1) non-resident individual who owns an interest in or is a corporate officer of a licensed business in good standing located within the city. OR (1) ON AND AFTER _________, 2023,the authority shall consist of THIRTEEN (13) seven (7) members, (1) (2) of such members being from each of the existing, or hereafter altered, city council districts, and three (3) TWO (2) members to serve at large, ONE MEMBER APPOINTED BY THE BOARD OF COUNTY COMMISSIONERS, ONE MEMBER APPOINTED BY THE JEFFERSON COUNTY SCHOOL DISTRICT BOARD OF EDUCATION, AND ONE MEMBER APPOINTED BY THE SPECIAL DISTRICTS LEVYING A MILL LEVY WITHIN THE CITY, PURSUANT TO CRS 31-25-104(2). If, after reasonable advertisement, no applications are received from residents withing the relevant city council district for a vacancy on the authority, any otherwise qualified resident of the city may be appointed. The at large members may include one (1) elected city council member, and/or one (1) non-resident individual who owns an interest in or is a corporate officer of a licensed business in good standing located within the city. (2) WITH THE EXCEPTION OF THE MEMBERS APPOINTED BY THE COUNTY, SCHOOL DISTRICT AND SPECIAL DISTRICTS, each appointment to the authority shall be made by the mayor subject to approval by majority vote of the entire city council. The term of office of each member shall be five (5) years. Any member (with the exception of a nonresident business owner member AND THE MEMBERS APPOINTED BY THE COUNTY, SCHOOL DISTRICT AND SPECIAL DISTRICTS) who shall change his personal residence to an address outside the city or outside the district he OR SHE represents shall cease to be a member of the authority and THEhis seat shall automatically be deemed vacant as of the date on which THE MEMBERhe ceased to be a resident of the city or of the district. Any nonresident business owner member whose business is no longer in good standing with the city or whose business ceases operations or moves outside the city limits shall cease to be a member of the authority and the member’s seat shall be deemed vacant as of the date of that occurrence. (3) A member whose term has expired shall continue to hold office until Ahis successor has been appointed and has qualified. Terms of office shall be staggered so that the term of at least one (1) member shall expire each year. The city council may appoint any number of ex-officio nonvotingmembers to serve for terms at the pleasure of the city council. Section 2. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of ______ to ______ on this ____ day of ________ 2023, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for __________________ , 2023, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of ______ to ______, this ____ day of _________ 2023. SIGNED by the Mayor on this ________ day of ____________________, 2023. Bud Starker, Mayor ATTEST: Stephen Kirkpatrick, City Clerk Approved as to Form: ________________________________ Gerald E. Dahl, City Attorney Published: Jeffco Transcript and www.ci.wheatridge.co.us First Publication: Second Publication: Effective Date: